BOE released a performance forecast today. It is estimated that in the first half of 2023, the net profit attributable to the parent company will be 700-800 million CNY, a year-on-year decrease of 88%-89%. The profit in the same period last year was 6.596 billion CNY.
▲ Picture source BOE Announcement
In addition, BOE expects that in the first half of 2023, its net profit after deducting non-recurring gains and losses will be a loss of 1.5 billion to 1.6 billion CNY, a year-on-year decrease of 135%-138%. The profit in the same period last year was 4.239 billion CNY.
Regarding the reasons for the performance changes, BOE stated that in the first half of 2023, the global macroeconomic situation is complex and changeable, and terminal consumer demand is recovering slowly. In the first and second quarters of 2023, the company’s profitability after deducting non-recurring gains and losses will improve quarter by quarter. In the second quarter, revenue will increase month-on-month, and the net profit after deducting non-recurring gains and losses will become profitable.
In terms of LCD, the company strictly implements the business strategy of “dynamic production control and on-demand production”, and continues to promote the healthy development of the industry. According to the data of consulting agencies, since March 2023, the prices of LCD TV products have continued to rise, and the prices of IT products have gradually stabilized, and the recovery trend has begun to appear. While product prices are rising, the demand for downstream stocking in mainstream application areas is gradually released, the demand for innovative application areas such as smart cockpits, AR/VR, and folding is growing steadily, and the utilization rate of production lines is rationally increasing, which promotes the improvement of the company’s performance.
In terms of OLED, although the overall shipment of smartphones in 2023 is not optimistic, the penetration rate of flexible AMOLED in smartphones still maintains a significant increase. In the first half of the year, the company seized market opportunities and focused on high-end demand. The semi-annual flexible AMOLED shipments exceeded 50 million for the first time, a year-on-year increase of nearly 80%. Considering the large depreciation pressure and the low-price competition situation in the low-end market, the profitability of the company’s AMOLED-related business has improved but is still under pressure.
It was previously reported that BOE had stated in May that its flexible AMOLED shipment target for the whole of 2023 would exceed 120 million pieces.
